The news was not so good in Rochester, however, with Saputo’s chief executive Lino Saputo confirming what was once the town’s biggest employer would be sold off later this year.
But not before owner Saputo Inc cleans it out of any machinery or equipment of value. The plant was closed by Murray Goulburn as the business fought to stave off its problems and inherited by Saputo after it purchased the co-operative.
Mr Saputo said despite the recent loss of inputs in Cobram his company was spending millions of dollars on the cheese plant.
If necessary, Mr Saputo said the company would truck milk in from other regions to maintain production.
He said Saputo was looking at a variety of options and would even consider buying milk from other processors if that was required to keep the plant running at optimum levels.
The Canadian-based processor bought Murray Goulburn for $1.31billion after suppliers overwhelmingly voted in favour of selling the co-operative in April.
While Cobram has had a dairy processing plant for almost 70 years, the next-generation operation was officially launched in late 2016 with then owner Murray Goulburn saying it would supply private-label cheese to Coles.
The company said the plant also had the capability to produce Devondale brand cheddar and mozzarella cheeses in different packs and combinations, with as much as 60000 metric tonnes of cheese going through the new factory each year, and space to expand the plant in future.
In an advertisement to the region at the time, Saputo touted its credentials as the ‘‘largest dairy processor’’ in Australia, including being the owner of the country’s oldest dairy processor — Warrnambool Cheese and Butter — as well as the newly-acquired Murray Goulburn.
‘‘We believe the combination of these two iconic dairy companies is a positive development for all our farmer suppliers and unites some of Australia’s best loved brands,’’ the ad read.
‘‘As a supplier of Saputo Dairy Australia you can expect our commitment to pay competitive prices for milk, a dedicated team who understand the dairy industry, and integrity in every aspect of our business relationship with you.’’
At the time of the sale to Saputo, MG chief executive officer Ari Mervis said current suppliers could expect terms ‘‘no less favourable’’ than their current situation until July 2023.
Saputo had previously committed to pay a competitive milk price that was no less than the greater price of the offer to Warrnambool Cheese and Butter, which was already owned by Saputo, or the final weighted average of the farm gate milk price published by the two largest processors in the relevant region.
20°C